Is utility theory an accurate description of human decision making? If it is not, why not?
A) Yes, it is an accurate description of human decision making.
B) No. People don't consider the risks associated with each option.
C) No. People are influenced by factors in addition to those described by utility theory, such as the way the options are described.
D) No. Utility theory doesn't incorporate the desirability of each option as a factor in decision making.

Question

Quizplus · Accepted Answer

While utility theory is a useful model for understanding how people make decisions, it fails to fully capture the complexity of decision-making in the real world. For example, people don't always make rational choices based solely on maximizing utility, and their decisions can be influenced by a range of other factors, such as emotions, social norms, and the framing of the decision problem. Choice C reflects this view and is therefore the best answer.

Is Utility Theory an Accurate Description of Human Decision Making